Fusion Corporation is owned equally by Rocky and Samuel. Rocky and Samuel purchases their stock several years ago and have adjusted bases for their Fusion stock of $17,000 and $30,000 respectively. Each shareholder receives two liquidating distributions. The first liquidating distribution, made in the current year, results in each shareholder receiving a one-half interest in a parcel of land that has a $44,000 FMV and an $14,000 adjusted basis to Fusion Corporation. The second liquidating distribution, made in the next year, results in each shareholder receiving $22,000 in cash. a. What are the amount and character of Rocky and Samuels recognized gain or loss for the current year? For the next year? Gain or Loss recognized Current year Gain or Loss recognized Next Year Shareholder Amount Character Amount Character Rocky Capital Gain/loss Capital gain/loss Samuel Unrecovered basis Capital gain/loss B. What is the basis of the land in Rocky and Samuels hands? Shareholder Basis Rocky $ Samuel $ C. How would your answers to Parts a and b change if the land has a $4,000 FMV instead of a $44,000 FMV? Compute the gain or loss for each shareholder for the current year and then for the next year. Gain or Loss recognized Current year Gain or Loss recognized Next Year Shareholder Amount Character Amount Character Rocky Unrecovered basis Capital gain/loss Samuel Unrecovered basis Capital gain/loss What is the basis of the land, with the new FMV amount Shareholder Basis Rocky $ Samuel $